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The U.S. International Development Finance Corporation (DFC) recently announced a significant $70 million investment in India’s private sector, aiming to strengthen key areas such as health systems, affordable housing, and small business support.
The new funding aligns with the shared priorities of the U.S. and Indian governments, focusing on sustainable growth and addressing pressing developmental challenges in the region.
Investment in health systems
According to DFC, a major portion of the investment will be used to improve India’s health infrastructure, particularly in vaccine production.
During her visit to India, DFC Deputy CEO Nisha Biswal signed a $20 million loan agreement with Panacea Biotec Limited, a leading pharmaceutical and vaccine producer.
The loan will help Panacea expand its production of the hexavalent vaccine, a six-in-one vaccine for children that protects against diphtheria, tetanus, polio, pertussis, hepatitis B, and Haemophilus influenza type B.
The expansion will allow the company to produce approximately 70 million doses annually, significantly increasing its capacity to meet global vaccine needs.
“Our partnership with India is both local and global,” said DFC Deputy CEO Nisha Biswal said during a visit to India. “DFC is working to deliver concrete developmental impact for communities across India, and we are partnering with the Indian private sector to tackle some of the world’s most pressing challenges.”
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Affordable housing initiatives
In addition to the health sector, DFC is making a substantial contribution to affordable housing in India. A $50 million loan agreement was signed with Vastu Housing Finance Corporation Limited, which focused on providing affordable home loans to lower- and middle-income families.
The project is expected to provide affordable home loans to more than 2,200 Indians, more than 95 percent of which will support women as a sole borrower or co-borrower.
Vastu’s efforts extend beyond housing, as the company also plans to provide roughly 1,000 loans to small businesses. Most of these businesses are expected to be owned or led by women, further contributing to economic empowerment and inclusivity in India’s financial landscape.
DFC’s expanding presence in India and Indo-Pacific
India is a key market for DFC, representing the organization’s largest investment destination. As of fiscal year 2023, DFC has invested approximately $3.8 billion in India, including $820 million in new projects over the past year.
In recent years, DFC has more than doubled its total investments in the Indo-Pacific region, which now amount to over $9.5 billion, reflecting the growing strategic importance of this region.
Over the past quarter alone, DFC approved 42 new projects globally, worth over $5.1 billion, with at least $230 million focused on Asia.